The African Continental Free Trade Area (AfCFTA) holds immense promise for the continent, according to former Nigerian Central Bank Deputy Governor Kingsley Moghalu. In a recent interview, Moghalu stated that the ambitious free trade agreement has the potential to lift around 30 million Africans out of poverty and add a staggering $500 billion to the continent’s GDP by 2035.
Moghalu believes the key to unlocking this potential lies in fostering greater intra-African trade. He urges African leaders to prioritize policies that encourage businesses to trade within the continent, tapping into the vast market of over 1.3 billion people and diverse resources. These policies could include streamlining customs procedures, facilitating cross-border investments, and developing robust infrastructure to connect African markets.
While acknowledging the challenges ahead, Moghalu emphasizes the significant opportunities presented by AfCFTA. By boosting regional trade, the agreement can create new jobs, improve living standards, and unleash the economic potential of a continent often hampered by fragmentation and isolation.
However, achieving the projected gains won’t be automatic. Successful implementation of AfCFTA requires concerted efforts from governments, businesses, and civil society to address remaining obstacles, such as inadequate infrastructure, trade logistics, and regulatory hurdles. Strengthening regional value chains and enhancing productive capacity will also be crucial to maximize the benefits of the agreement.
With its bold vision and immense potential, AfCFTA offers a pathway for a more prosperous and united Africa. The onus now lies on African leaders and stakeholders to turn vision into reality by implementing effective policies, overcoming challenges, and harnessing the collective potential of the continent’s vast resources and workforce.
